New Management - Vacant

Summary

This information sheet is for those who are securing a new management that will be vacant on handover. The information provided will assist in understanding not only the things to consider but the education points you can use to help your Client (lessor) understand their obligations as an investor.

Not all business is good business

It is exciting to be able to build your portfolio, there is no doubt about that. However simply signing up and managing every property that is offered to you is not always the best way to grow your business. Some business can actually create a loss (financially and time based) for you and it's important that you know how to select the clients and properties that best suit your business model. 

Creating a Client Selection Criteria is just as important as following a Tenant Selection Criteria if you want to be able to sustain growth in your business in all aspects.

Client Selection Criteria

When you set out to create this criteria you should based your "tick boxes" on what is going to reduce risk against you as the agency, what is going to reduce the risk against the property owner and above all what is going to make your job easier. After all, it's important to understand as a real estate agent you are not the decision maker, you are the negotiator and communicator. Consider the below when establishing who are the clients you select for your business.

• What condition is the property in? The property does not need to be brand new but overall is the property in good condition and considered something that is "livable"? 
• Does the property meet compliance requirements under any impacting legislation (e.g. tenancy laws, minimum housing standards, building codes, smoke alarm laws, pool safety laws etc.)?
• Are the inclusions all in working order (e.g. dishwasher, air con units, garage door motors etc.)?
• Is the owner willing to do maintenance when it is requested and do they understand their obligations as a lessor to ensure the property is provided and maintained to a suitable standard including the inclusions?
• Does the owner permit you to have an approved spend limit when it comes to maintenance, allowing you to act on maintenance issues promptly and efficiently?
• Does the owner have realistic expectations relating to market price and rental return?
• Does the owner understand the importance of marketing the property as best as they can (e.g. the use of professional photography, signage, internet/online advertising etc.)?
• Is the owner willing to do improvements to the property to attract the best possible tenant (e.g. freshening up the gardens, professionally cleaning the property, repainting, replacing floor coverings etc.)?

Pre-Marketing Launch

It is important to ensure that when your property "hits the market" that it is ready to be inspected and occupied. Ensuring that you work with the property owner on having the property ready for open homes, inspections and a tenancy to commence. 

Spend the time in preparing the property for the market and have the launch date be in line with being able to conduct your first inspection within the first few days of the marketing campaign whilst the interest is high

What do you need to consider by way of forms, documents & items?

Of course you need to ensure that you have a compliant management agreement in place before you even consider advertising the property let alone arranging inspections. Below is a list of documents that you should ensure are prepared, available and if need be signed & executed as part of your onboarding / new management process.

• Management Agreement / Management Authority including all property owners signatures - signed and completed.
  • Please note: If there is someone that is signing on behalf of the property owner/s they need to be any of the following 
    • Enduring Power of Attorney (Australia)
    • Executor of the Estate (Australia)
  • Your Management Agreement should clearly outline the costs agreed with the property owner for your services. Consider discussing the following items as part of your listing presentation and costings:
    • Management fee
    • Letting commission
    • Administration Fee
    • Lease negotiation fee
    • Routine inspection fee
    • Change of shared tenancy fee
    • Tribunal preparation and attendance fee
    • Insurance claim preparation fee
    • Non-PM related property inspection fee
    • Change of shared tenancy fee
    • Advertising fee
    • PLEASE NOTE: As per the Rental Agreement you have signed with @realty Head Office, there are fees considered mandatory for each property management you sign up. Failure to include the fees in your management agreement may result in @realty seeking these fees from you as the agent.
• Current Title Search & Property Report
• Smoke Alarm Compliance documentation
• Pool Safety & Compliance documentation (if a pool on the property)
• Keys - You will need to ensure that you have enough sets of keys for access to the property in accordance with your relevant tenancy legislation. It's important to ensure that you have a full set of keys for your management / office as the backup so you are able to access the property if and when needed
• Strata / Body Corporate By Laws (if relevant) - most, if not all, tenancy legislations require a copy of the By-Laws to be issued by the lessor to the tenant as part of the lease terms
• Warranties / Maintenance Contracts - Are any inclusions at the property under warranty or have a maintenance contract?
• Insurance coverage - It is important to never sign up a new management without the knowledge that your property owner has the relevant insurances in place to protect them. Check out our article on this at: https://www.atrealtysupport.com.au/a/solutions/articles/14000149136

Uploading to the Cloud / CRM

Please note that our Head Office Rentals Team will not begin setting up the new management profile in their systems until you, as the Agent, have uploaded the above to the CRM / Cloud and created a new listing.

Review the information on the following link on how to create a management record: https://www.atrealtysupport.com.au/a/solutions/articles/14000148410